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Repayments by Nations Facing an External Debt Crisis Have Been

Question 103

Multiple Choice

Repayments by nations facing an external debt crisis have been complicated by the fact that:


A) lending nations do not want them to repay their debts in order to keep them politically dependent.
B) they have more political power than the lending nations, and use that power to hold off paying their debts.
C) lenders continue to induce them to borrow in order to increase the sizes and profits of their loan-making operations.
D) their populations may have low incomes, making it difficult to impose harsh austerity measures needed to repay the debts.

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